Ireland

Fitch yesterday (Wednesday) downgraded EBS Building Society’s senior debt rating from A to BBB+. The rating action dragged down the support rating of EBS’s covered bond issuing subsidiary, EBS Mortgage Finance, from 1 to 2 to reflect the change in its parent's rating.

Anglo Irish Mortgage Bank yesterday (Thursday) issued the debut transaction off its Irish commercial mortgage covered securities programme. The deal is also the first for the market segment.

Fitch yesterday (Wednesday) assigned Anglo Irish Mortgage Bank a long term issuer default rating of A-, with a stable outlook.

Moody's yesterday (Monday) downgraded Anglo Irish Bank Corporation’s long term debt rating from A1 to A2 after the Irish government announced it is nationalising the bank. The outlook on the rating is negative.

Fitch on Friday affirmed the long term issuer default ratings of Anglo Irish Bank Corporation at A- and the AAA rating of its covered bonds, while Standard & Poor’s today (Monday) confirmed that its A- rating of the bank remains on negative review.

The Irish government last (Thursday) night nationalised Anglo Irish Bank, after its share price had fallen sharply in recent days amid deposit withdrawals. The bank was one of three Irish covered bond issuers to be downgraded by Fitch earlier yesterday, while another’s rating was placed on negative review.

EBS Mortgage Finance yesterday (Tuesday) executed and retained the first deal off a Eu6bn covered bond programme.

Rating action: Fitch today (Wednesday) assigned ratings to EBS Mortgage Finance, a fully owned subsidiary of EBS Building Society that has been set up under Ireland’s covered bond legislation.

Rating action: Fitch on Friday placed the long term issuer default ratings of three Irish covered bond issuers on Rating Watch Negative.

The corporate bond market is booming, KfW has celebrated its 60th birthday with a bumper order book, and government guaranteed issuance is spreading. However, all this is happening at a price. And apart from the odd tap, the covered bond market can do no more than watch the new pricing landscape take shape.

Rating action: Moody’s yesterday (Tuesday) placed on review for possible downgrade the Aa3 long term ratings of Bank of Ireland and Allied Irish Banks.

EBS Building Society has set up EBS Mortgage Finance plc as the issuer for its asset covered securities (ACS) programme, and Anglo Irish Bank Corporation has established Anglo Irish Mortgage Bank.